Report finds lender discrimination

A study conducted by the National Community Reinvestment Coalition, a Washington-based advocacy group, reports that black people are twice as likely as whites to receive high-cost loans in most major metropolitan areas. They also found that the racial divide was more prevalent amongst middle-class and upper income borrowers, and that similar trends were found when comparing Hispanics and whites. The group defined high-cost loans as those having rates at least 3 percent above Treasury securities. The Mortgage Bankers Association attacked the report for ignoring statistics such as borrowers’ debt levels and the amount of money they had available for down payment. “The study seeks to identify an overly simplistic answer to a much more complex issue,” said a representative of the trade group. more [AP via AMNY]